This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

REITs: An Overvalued Asset Class

Public Storage (PSA) owns and operates self-storage facilities in the U.S. Shares are 42.7% overvalued with fair value at $49.14. The weekly chart profile is positive with the five-week MMA at $66.37 and the 52-week high at $70.60, set last Friday. My semiannual value levels are $61.09 and $58.96 with quarterly pivots at $70.53 and $71.34, and monthly risky levels at $72.17 and $72.70. Shares were recently trading at $70.04.

Shurgard Storage Centers (SHU) develops and operates self storage centers for personal and business use in the U.S. and Europe. Shares are 57.4% overvalued with fair value at $36.86. The weekly chart profile is positive with the five-week MMA at $55.12 and the 52-week high at $59.30, set last Thursday. My semiannual value levels are $48.31 and $44.77 with quarterly pivots at $50.45 and $52.80, and a risky level at $58.80. Shares were recently trading at $57.88.

Simon Property Group (SPG) owns and operates regional malls and community shopping centers. Shares are 54.7% overvalued with fair value at $49.90. The weekly chart profile is positive with the five-week MMA at $72.43 and the 52-week high at $80.97, set on Aug. 3. My semiannual value levels are $69.29 and $65.81 with a quarterly pivot at $77.70 and quarterly/monthly risky levels at $79.93 and $81.00. Shares were recently trading at $76.99.

Taubman Centers (TCO) owns and manages regional retail shopping centers in the U.S. Shares are 62.3% overvalued with fair value at $21.29. The weekly chart profile is positive with the five-week MMA at $32.50 and the 52-week high at $36.34, set on July 11. My semiannual value levels are $32.02 and $30.62 with quarterly/monthly risky levels at $35.88 and $36.35. Shares were recently trading at $34.76.

Vantas (VTR) owns and leases health-care related and senior housing facilities in the U.S. Shares are 64.6% overvalued with fair value at $19.26. The weekly chart profile is positive with the five-week MMA at $30.74 and the 52-week high at $32.70, set on Oct. 10. My semiannual value levels are $30.98 and $29.94 with quarterly risky levels at $36.10 and $37.48. Shares were recently trading at $31.99.

Richard Suttmeier is president of Global Market Consultants, Ltd., chief market strategist for Joseph Stevens & Co., a full service brokerage firm located in Lower Manhattan, and the author of TheStreet.com Technology Report newsletter. At the time of publication, he had no positions in any of the securities mentioned in this column, but holdings can change at any time. Early in his career, Suttmeier became the first U.S. Treasury Bond Trader at Bache. He later began the government bond division at L. F. Rothschild. Suttmeier went on to form Global Market Consultants as an independent third-party research provider, producing reports covering the technicals of the U.S. capital markets. He also has been U.S. Treasury Strategist for Smith Barney and chief financial strategist for William R. Hough. Suttmeier holds a bachelor's degree from the Georgia Institute of Technology and a master's degree from Polytechnic University. Under no circumstances does the information in this commentary represent a recommendation to buy or sell stocks. While he cannot provide investment advice or recommendations, he invites you to send your feedback -- click here to send him an email.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,071.22 -41.93 -0.24%
S&P 500 1,977.80 -5.05 -0.25%
NASDAQ 4,505.8520 -6.3420 -0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs